Question

Comprehensive Accounting Cycle Problem In January, Sammy Bearkat organized a corporation to provide tutoring services to students The company, called Stellar Student Tutoring began operations immediately. The business general ledger balances are shown below: Accounts I Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Stellar Student Tutoring Post-Closing Trial Balance January 31, 2020 Debit $32,000 11,000 5,600 68,000 4,200 85,000 27.400 $116,600 $116,600 During February 2020, the following transactions occur: Feb 1" The corporation issued an additional 10,000 shares of capital stock to Harris Corporation in exchange for $15,000 cash Feb 1 Purchased a building from Sweeney Enterprise for $150,000. A cash payment of $25,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. Feb 1 Paid $7,800 for fire insurance on building for next 3 years. Feb 9th Purchased additional supplies on account for $3,500 Feb 11 Billed students $35,840 for tutoring services provided during the first half of February Feb 16 Paid $12,300 in salaries earned by employees during the first half of February Feb 18th Received $10,500 cash in advance from students for tutoring services to be provided in the future Collected cash from accounts receivable of $40,000 Feb 22 Feb 25 Paid $3,330 for utilities during period. Feb 25th Paid $6,250 cash on accounts payable. Feb 28 Declared and paid a $2,000 dividend. Sammy Bearkat uses the following accounts to record transactions for Stellar Student Tutoring

Answer 1

Credit Debit $ 15,000 $ 15,000 $ 1,50,000 $ 25,000 $ 1,25,000 $ 7,800 $ 7,800 $ 3,500 $ 3,500 $ 35,840 $ 35,840 Date Accounts Title Feb-01 Cash Common Stock Feb-01 Building Cash Notes payable Feb-01 Prepaid Insurance Cash Feb-09 Supplies Accounts Payable Feb-11 Accounts receviable Tutoring Service Revenue Feb-16 Salaries Expenses Cash Feb-18 Cash Unearned Revenue Feb-22 Cash Accounts receviable Feb-25 Utilities Expenses Cash Feb-25 Accounts Payable Cash Feb-28 Dividend Cash $ 12,300 $ 12,300 $ 10,500 $ 10,500 $ 40,000 $ 40,000 3,330 $ 3,330 6,250 $ 6,250 $ 2,000 $ 2,000